Freddie Mac Prices $759 Million Multifamily K-Deal, K-F126

MCLEAN, Va., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The approximately $759 million in K Certificates (K-F126 Certificates) are expected to settle on or about December 16, 2021. The K-F126 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are SOFR-based.

K-F126 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AS	$759.622		9.58	24	30-day SOFR avg + 24	100.000
XS	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and PNC Capital Markets LLC
• Co-Managers: Cantor Fitzgerald & Co., Drexel Hamilton, LLC, Performance Trust Capital Partners, LLC and Wells Fargo Securities, LLC

Related Links

• The K-F126 preliminary offering circular supplement: http://capitalmarkets.freddiemac.com/mbs/data/0kf126oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-F126 Certificates will not be rated and will include one senior principal and interest class and one interest-only class that is also entitled to static prepayment premiums. The K-F126 Certificates are backed by corresponding classes issued by the FREMF 2021-KF126 Mortgage Trust (KF126 Trust) and guaranteed by Freddie Mac. The KF126 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be subordinate to the classes backing the K-F126 Certificates and will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.